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given - nominal value of share rs 10,no. of shares issued 10,000.Total net profit 20,000 and dividend paid 10% . what is earning per share


Prince Gupta 20th Aug, 2020
Answer (1)
Prabhav Sharma 20th Aug, 2020

Hello,

Value per share = 10 (Given)

Number of shares = 10000 (Given)

Dividend paid = 10 % (Given)

Net profit = 20000 (Given)

Now, we know that Dividend Paid = Value per share x number of shares x % Dividend paid

= 10 * 10000 * 0.1

= 10000

Now, earnings per share (EPS) = (Net profit - dividend) / number of shares

EPS = (20000 - 10000) / 10

Solving this, we get:

EPS = 1 (Answer)

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